Kathmandu, October 3
With an aim to improve the existing laws related to the securities market, Securities Board of Nepal (SEBON) — security and commodities market regulator — has started the process to amend its guidelines to make it more contextual.
The guidelines need to be amended as the government has already submitted the amended Securities Act at the Federal Parliament for approval. Earlier, SEBON had submitted its concerns and suggestions regarding the act to the Ministry of Finance when it was being revised.
Rewat Bahadur Karki, chairman of SEBON, said that the regulator has already started the process of amending the existing guidelines. “We have already started the process to amend our guidelines, but we will not be able to release anything until the Securities Act is endorsed by the Parliament,” he informed. “We have included provisions akin to global practices that are followed in the international markets.”
As per him, the new act has included a provision whereby any person who has been assigned the post of chairman of SEBON will not be allowed to lead any other organisation that is affiliated or connected to the regulatory board after retirement. Similarly, the amendment has also included a provision which states that executive directors or deputy executive directors of SEBON will not be allowed to lead any organisation that is affiliated with the board for two years after their retirement.
Meanwhile, the board has informed that it is going to amend its directives, bylaws, merchant banker guidelines, and other laws related to the securities market.
Earlier, SEBON had issued new guidelines for all listed companies of Nepal Stock Exchange regarding corporate governance and accountability of companies towards their shareholders. According to the board, the guidelines will make the stock market more transparent and stable by promoting ethical practices among the listed companies, thereby making them accountable towards their shareholders.
A version of this article appears in print on October 04, 2019 of The Himalayan Times.